Big Tech stocks have lagged the broader market nearly all year. Here's what's going on
The tech giants have lagged the S&P 500 92% of the time in 2026, per Barclays. Here's what has led to the cohort's lackluster performance.
TL;DR
- Big Tech has underperformed the S&P 500 for 92% of 2026.
- This year is shaping up to be the worst for Big Tech since 2022, and second worst since 2013.
- Multiple compression due to rising Treasury yields is the main driver of underperformance.
- The U.S. 10-year Treasury yield reached a 20-month high of 4.8%, and the 30-year yield surpassed 5.2%.
- Geopolitical events in Iran and weaker-than-expected economic data are contributing to market jitters.
- Some predict the Fed may raise rates in September, similar to conditions in 2022 that hurt Big Tech.
- New AI-linked financing could potentially ease capital expenditure concerns for hyperscalers and semiconductor stocks.